Sparkling Company uses IFRS. After 3 full years of use, the Sparkling Company revalues equipment with a carrying value of $990,000 to its fair value of $1,800,000 using the accumulated depreciation elimination method. The original cost of the equipment is $1,700,000 and the equipment has a useful life of 10 years with no scrap value. Sparkling Company depreciates under the straight-line method. How much is the revaluation gain or loss? Where does Sparkling Company report any unrealized gain or loss from the revaluation in the financial statements? Group of answer choices $810,000 unrealized gain in revaluation surplus reported in other comprehensive income in statement of comprehensive income $810,000 unrealized gain in continuing operations of statement of comprehensive income $710,000 recovery of unrealized loss reported in other comprehensive income in statement of comprehensive income
Sparkling Company uses IFRS. After 3 full years of use, the Sparkling Company revalues equipment with a carrying value of $990,000 to its fair value of $1,800,000 using the accumulated depreciation elimination method. The original cost of the equipment is $1,700,000 and the equipment has a useful life of 10 years with no scrap value. Sparkling Company depreciates under the straight-line method. How much is the revaluation gain or loss? Where does Sparkling Company report any unrealized gain or loss from the revaluation in the financial statements? Group of answer choices $810,000 unrealized gain in revaluation surplus reported in other comprehensive income in statement of comprehensive income $810,000 unrealized gain in continuing operations of statement of comprehensive income $710,000 recovery of unrealized loss reported in other comprehensive income in statement of comprehensive income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sparkling Company uses IFRS. After 3 full years of use, the Sparkling Company revalues equipment with a carrying value of $990,000 to its fair value of $1,800,000 using the accumulated depreciation elimination method. The original cost of the equipment is $1,700,000 and the equipment has a useful life of 10 years with no scrap value. Sparkling Company depreciates under the straight-line method. How much is the revaluation gain or loss? Where does Sparkling Company report any unrealized gain or loss from the revaluation in the financial statements?
Group of answer choices
$810,000 unrealized gain in revaluation surplus reported in other comprehensive income in statement of comprehensive income
$810,000 unrealized gain in continuing operations of statement of comprehensive income
$710,000 recovery of unrealized loss reported in other comprehensive income in statement of comprehensive income
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